Monday, 30 November 2020

Three Month Moratorium On VAT Sanctions

The moratorium forgives interest and penalties, in case of errors, while paying the tax owed

The Ministerio de Hacienda (Treasury) announced on Friday a three-month moratorium on “sanctions, arrears, interest, fines or any other sanctioning provision” regarding the Value Added Tax (VAT).

Rocio Aguilar, the Minister of Finance (Ministra de Hacienda)

This means, though the new tax regimen goes into effect on Monday, July 1, fines won’t be applied until October 1 for taxpayers who make errors while adjusting to the changes.

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The moratorium forgives interest and penalties, in case of errors, while paying the tax owed, giving taxpayers time to get used to the new obligations.

“We consider that a period for the first three months of application of the tax is sufficient for the taxpayer to make the necessary adjustments and adapt to the change(s),” said Rocío Aguilar, Minister of Finance.

However, this moratorium will not apply to taxpayers qualified as “large national business” or to the taxpayer who engages in fraud and in serious misconduct with the Treasury.

The Finance Minister that the moratorium become law next week after the bill was approved unanimously in Legislative Assembly on Thursday.

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Originally, the bill proposed forgiving taxpayers during the first six months of the VAT

Fines and penalties

The law establishes that taxpayers who do not present the monthly VAT declaration, would have to pay a ¢223,000 fine; and if they do not pay, they would be charged 1% per month interest on the amount owed.

Also, in cases where inaccurate or false data is presented, there are fines between 50% and 150% on the difference with the tax, depending on the severity.

 

 

 

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"Rico" is the crazy mind behind the Q media websites, a series of online magazines where everything is Q! In these times of new normal, stay at home. Stay safe. Stay healthy.

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